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tv   In the Loop With Betty Liu  Bloomberg  November 6, 2014 8:00am-10:01am EST

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inside scoop on what is, president obama's advisor and golfing buddy, robert wolf. the founder of 32 advisors. chairman and ceo tim armstrong joins me on the rush of digital content. is the industry drowning in content? i will speak with a legendary onigner and developer filling up the world trade a decade after the 9/11 attacks. vowing to find common ground. voters gave gop the jewel of the senate for the first time in eight years and republicans a bigger majority in the house. the president spoke in a news conference. >> part of my task now is to
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reach out to republicans and make sure i am listening to them. i look forward to them putting over at a very specific agenda in terms of what they would like to accomplish. let's compare notes in terms of what i'm looking at and what they are looking at. >> meanwhile, mitch mcconnell is promising to end the gridlock in washington. mcconnell is expected to be the next senate majority leader. >> we're going to function. the gridlock and dysfunction can be ended. dysfunction that actually works. >> mcconnell promises there will be no more government shutdowns or defaulting on the debt. bankuropean central staying on the course of interest rates. it announced moments ago it would keep rates unchanged at record lows. investors are waiting to see whether mario draghi will push
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for more stimulus for the euro zone. we will hear more from him a few minutes from now. most active stocks trading right now. i must critics seven years of growth. he says the issue is manufacturing keeping up with demand. it is really hard. york, monitoring 357 individuals for ebola. meanwhile, the new york doctor who came down to ebola is described as improving and in stable condition. is back with the new york yankees and back in the news. is with the yankees after a year-long suspension for using performance-enhancing drugs. rodriguez admitted under oath that he used drugs while playing for the yankees. he also is denied this.
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no word what baseball might go about this next. let's get back overseas. the ecb keeping things unchanged. the pressure remains as always on ecb to do more. >> and the excitement is in the news conference. number one is you want to expand the balance sheet by one chilean euros. how can you do that? can you achieve that with what is already announced? are your inflation expectations still anchored? the bank of japan. how do you react to stimulus from the bank of japan. what it did last week is really
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expose the ecb with how limited they are. >> talked less about the dissent. >> is the theater you can expect once it gets underway in a news conference and reports this week that members were set to mario draghi under his leadership style. you have got to remember these are fragile markets. for the last two years, that pledge and promise. dissent,is widespread you have to ask the question, how able is mario draghi to do anymore than he already has? >> thank you. the press conference starts in
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just about a half hour. .et's get back to tesla the company reported better than estimated third-quarter results and several years of 50% growth. overall, a mixed report. they had to direct down their sales target this year overall. joining me now, jamie butters, who covers tesla and other automakers from detroit. the report itself is pretty mixed. >> it was in that is right. they had a good report. they be estimated on it -- estimated earnings and the street. tesla, two of the last reporters, maybe earnings and stocks fell. people feel like they're not making enough progress. they get antsy and stock is up so high, they want profit.
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the stock just went up like everything was great. >> they did. part of it was the way muskets lanes they missed sales targets. they have got demand. >> right. there have been questions about demand. themrked hard to assure .hey have plenty the interest really served and more people want to buy the lot ofnt teacher to a luxury buyers. but really constrain on capacity and there continues to be a challenge trying to make more cars faster and keep the high standards and meet the high standards customers demand of them. >> and it raises questions about the future model elon musk will unveil. three, which will be the mass-market. also the model s. i have lost count, how many
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times has he given a deadline and pushed things that? the fourth one? is at least the second area that is right. away is not ad manufacturing thing. it is about continuing to tinker with the design. he said in february, is about him being a perfectionist. he thought about how it is hard to change the wheels around the bus. ford trying to build his company when it was new, but even more recently, there was huge demand for it. there was no way the fusion was going to outsell the camry.
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you can add to them over time, thent takes years area people do not want it anymore. a big bet on me put it billion dollars or more into the ground to build these factories. he has had progress in fremont and the assembly plant. the key factory seems to be going well, but it is an ongoing challenge. -- thank you. has -- the who huffington post, the tech crunch. 627 -- $627 million. >> we are really focused on making mechanized changes to advertising and making advertising as easy as
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e-commerce. advertising revenue will be coming into the bottom line. profits. we have our high-margin on a offside tearing down. on the advertising side, we are gaining profitability. the platform group got more profitable. we will see that happen. it is just we have investment mode. that will turn into profit mode and you're seeing that happen now. >> you have and they on a programmatic. you have been on the forefront of that. how do you continue to build on that. a more aggressive facebook and google on the advertising front? billion of0 to $600
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an industry. the marketplace overall globally is about 4% of advertising. that leaves 96%. we are signing the deals approvals around this and we are doing linear tv and i feel very good about where we are. there will be-10 programmatic systems and industry will be one of them. we want to the top once, but we are in a very good position to capitalize on the changed. -- the change. getting moreo much and more into content. how do we get advertisers to pay up for the content? it seems to be in the opposite direction. content. amount of
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>> we had advertisement prices that are growing overall. our advertisement prices individually are growing. transition to our formats. investments we're making in 2010, 2011, 2012, that people were questioning, looking forward saying, content will be important for this exact reason. we have been able to get in front of technology but also immune to emirates francis. mentioned,es you they're doing content distribution. we are doing high-value content brands and distribution and monetization. that is a huge advantage for us. life on my table tell -- cable
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television, only a certain number of channels we get and only a certain number of hours to put the content out. some point, even a user like me, my eyeballs only go to so many places. competition, won't that eventually lead itself out? cut the bottom line is you do high-quality content and we do high the content. as the system gets better and better him a bit will focus more and more on high-quality content. i would say the content quality is finite. peacebeings want just of -- a sources. the benefit is, as all the distribution of the the and the algorithms personalize things for people, they will go to places like bloomberg or huffington post to get this
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information. the content low is the popular, but will not be able to compete with high-quality trusted content. aol, the other front on you have got a growing programmatic advertisement business and a growing content business. do you need to let one of those go? hishat we're organizing three main areas. services. aol brands, those kinds of brands. the programmatic and video last ones overall. between those things, we have a nice flywheel effect on the business. over time, we will continue to manage business on the value side for aol and on the growth side or content and that forms. managing in the mode you are describing now.
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>> moving and shaking this hour, hip-hop mogul jay-z fear you know him for his music and his closing line and is talent agency and maybe for his life come up beyoncé. he is now branching out. he has promoted it in his music and public appearances. it is not for insignia of the ace of spades on the bottle. at $250. tag started i imagine it would be a pretty penny. president obama has had a world -- word of words not over politics, but over his golf aim. we will hear if the words carry any weight with his golfing buddy. we will be back.
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>> many close to the administration called tuesday's vote a wipeout for the democrats. obama knowledge the gop, he struck a tone of togetherness. >> i continue to believe we are simply more than just a collection of blue and red states. we are the united states. >> i want to bring in my guest the hour, the former head of ubs america, friends of the president, a golfing buddy who has also served on his job counsel as well. would you call this a wipeout? clemson a question and was a strong night for the republican party. i look at it in little differently. of the 24 states, the president lost. 80% on the ballot.
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i did not have high expectations. i think the democrats did not learn their lesson from 2010 when they try to detach themselves from the president's policies. parties. those i think it is naïve you can -- to think you can caucus with the president on policies and then detach from the election. >> what his policies are not the policies of the american public? >> the truth is, we should have debated policies the railway. , i think it is a debate democrats should have taken. minimum wage, it was on five ballots. all five ballots slept. four of those ballots were republican states are arkansas, nebraska, south dakota. it annoyed. not going tou're vote democrat, does not make a difference one way or the other.
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but you're going after the independent vote and i think you should debate on the economics. classroom republicans did a good job of getting the voters out to the polls. men out getting white to the polls. if you look at statistics, which i read through this morning, three quarters of the voters at the polls were white. republicans, 31% white men. 31% voted for a republican candidate. clearly, it almost begs the question whether republicans need a hispanic or they need the navy aftere americans. maybe it is ok if they galvanize the white base. >> i would not say that way. republicans ran a strong race across the country. there was a third less of voters out. was, one thing the president does well is he brings people to the ballot box. he showed that in the national election.
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>> but he did not this time. >> they detached from him for the most part. when in dupont -- into pennsylvania and won the governorship. minnesota. you can take a swing states and say, where he went, we did ok. let's not project two nights ago for 2016. during the midterm and the lame-duck environment, the following national election and the senate, look at 94 and look at 2008. >> can you blame some of the democratic candidates for doing this? they lost partly because they were attached to obama. republicans did a good job on that. >> they did, but if you have republicans going against the have the, and you democrats going against the president, it is easy to think about whose side will win. >> day with me. i know you not going anywhere. we will have more of a debate
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with the former staples ceo joining us. ♪
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>> you're watching "in the loop" live. time warner and dish network is getting ugly. says it is not quite the product it used to be and threatened to drop the network in the earnings call earlier last week. ceo john martin struck back saying they were very antagonistic and aggressive. trying to get a deal done after many channels went dark. cutting 14,000 jobs as it works to revamp her.
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-- its investment. newsng down with bloomberg for an exclusive interview and said the u.k. bank will have fewer, very highly paid anchors. >> in terms of pay, we believe in paying for performance, and we are able to do that as we reposition the business. of course, as we make our investment and more focused, we in theve less people organization, but that is in questionthe strategy. jcpenney getting into the holiday spirit. announcing it will open at 5:00 thanksgiving day. three hours earlier than it opened last year and at our ahead of the competitors macy's and polls. they will open at 6:00 p.m. you may not have finished half of your turkey dinner by the time you need to go shopping. bloomberg television is on the
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market. we saw equities were stocks rallied yesterday to record highs after the midterm election. we are coming off of that just a little bit and you can see s&p futures in particular. job number sold come out. the all-important government jobs report. we are on the markets again in 30 minutes. back on retail a few months ago, a related announcement in the markets, his first new york city store will open in manhattan. at the same time, it was also planning a retail coup on the other side of the world. macy's announced plans to build , they's department door first macy's ever outside the united states. that was the man making all of this happen. urban.sident and ceo of also, my guest host staying with me. his fair share of international
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travel. >> i have been working there for five years. experiencegiven the footing makes use projects in the u.s. like here in new york, we have done it in box -- in boston and washington dc at all over the country, but five years ago, we made our first trip outside the u.s. to see if we want to do international business. we had counted people. with that china and i took the middle east as an assignment. my first trip, i made with the first chairman of bloomingdale's . you may know the retailing world is not offered directly by the retailers. it is offered by the offices who own and operate the stores. to make these deals, you have to get a close understanding.
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we picked the number one family, who will do the most extraordinary job there. we made a bloomingdale's deal as well very it will be their second store and the first macy's store outside the u.s. ofopened our first phase this retail project a year ago. every luxury brand you could name, the top 50 brands in the world. a four seasons hotel is under construction. >> a lot of the rich families in the oil-rich countries, don't they come here to go shopping? i hear it is christmas in summertime, they come to your -- to new york and l.a. paris. >> they certainly do. do, like i'm sure you they'd travel extensively probably four times the year on average. they go to europe and america. they want to shop more than four times a year. the convenience factor of the impetus the international brands' means they can shop, which they do.
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>> first of all, i have the utmost respect for your company. other than your ceo of the miami dolphins. >> they had a good game, by the way. as that is a good number. >> i will ask you a question because you have done amazing eggs around the globe. how do you take in consideration something like loyalty down and listen or risk in the middle east, when you know you will be in the middle east for the long run. how do you think about short-term versus long-term and do you change your investment strategy? strategiesre of our is long-term real estate. everything we do is try to the best in >>. it is who you put in there any architecture and planning and execution of these projects is unequaled. no one matches what we do in those categories. from a competitive point of view, all of the people who live
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there, 90%, are educated in the u.s.. they travel all over the world and they appreciate the western oriented as fusion that they do. and they love brand names. the world a area of good benchmark or a good gauge of how international is as are behaving? >> there is an article in the paper, the new york times, that and theyut the airline are proliferating in the u.s. and coming in the u.s. ind is large his orders airline history, but he does airport building a $7 billion airport, our architect is billion airport. between them, you're talking about two fourth -- 2.5 billion people living two hours away. it becomes a mecca for three and
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four day trips, weekends, and special shopping trips. it is the safest place in the world in that part of the world. car thank you for joining us. great to see you. we are getting headlines right now not just on jobless claims, but the lowest level since 2000. we are also getting oil headlines as well. almost all the demand forecast for crude on show, the breaking news this -- news desk with more. >> that is right. they released their 2014 outlook . 42% of the world houses oil. demand for crude for these countries may fall to a 14 year low of 28.2 million barrels in 2017. that is 600,000 a day from last 800,000ses from or, and
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below the amount required this year. they also lowered every published forecast towards cruises 2045 except for next higher than previously thought. it was did by 700,000 barrels to 92.3 million a day. you are seeing a plunge in oil prices. you have got to go to the pump to see that. initial jobless claims for the weekend. that is better than forecast. 238,000 jobs. bottom linee the same story is pretty good, as there is demand for employers to increase their workforce. >> the jobs market is slowly taking up steam here. thank you so much. much my head on the jobs and economy and what the gop victory could mean for jobs in this country. we will ask a former ceo as well as my guest host.
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plus, an analysis of tomorrow's all-important government labor report with our all our lineup. look at the lineup. come on. i'll be joined by a labor secretary, economists, as well as a real estate developer, bruce ratner. that is all coming up tomorrow. ♪
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>> mario draghi speaking right now in frankfurt. mario draghi saying a variety of things, including the ecb was unanimous in their commitment to if they need. that is let them are faxing and i. -- at this -- fixing at this point. you the newsng conference at premier anymore headlines coming out. if you want to watch this, you can watch this right now on our live event channel. do not turn that dial.
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we have a lot more coming up on including back here in the u.s. republicans -- planning for the pipeline and also restoring the 40 hour work week. house speaker john boehner and senate minority leader right now mitch mcconnell had an op-ed in the wall street journal saying, the logjam in washed and will be signaled to be broken. joining us now is tom, the founder and ceo of staples. now the chairman of the venture capital firm. also the long-term donor and supporter of the republican party. on the opposite side is my guest host for the hour. and the former chairman and ceo of ubs america, who also served on the president passes jobs council. tom, let's let you have the floor first. you just saw john boehner and mitch mcconnell write down a couple of their priorities. what will be the biggest one for
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you that you think will help create jobs and get the economy going? >> it is important we get corporate tax reform. we have choice of dollars sitting overseas. uncompetitive tax structure. we have got to make it competitive again. bipartisan support. well.could be trade as it should be in the keystone pipeline, there should be on oil and i would like to think we can get immigration done as well, absolutely necessary for a high-tech industry. it is absolutely crazy. john boehner passes problem is not so much president obama as the right wing and the tea party. >> i would agree 1000% with tom ist corporate tax reform something both sides need. obviously, the export initiative , i am on thee
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export council. i am a huge supporter. it is important for the business. >>. you agree with harry reid -- to get botha way sides to come to the table. both sides can get done. but it is hard. tom knows is not an easy thing in this country. >> we have had an incredible regulatory burden in the past six years. small launch in companies i work with have to fight the effects and the dodd-frank that have come upon us. ist will happen here congress, now that you have both under one-party control, will be able to rein in this regulatory outcross -- albatross.
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>> i am for lower regulation, although i am for dodd-frank. i am more of a principal ace approach and everything trying to go down. and 85 page blueprint where i was there. >> if congress gets together the way you and i are, we are all done. life is so simple the way we do that. guy, soa massachusetts i'm not surprised. >> area you both do not agree on, minimum wage. you mentioned earlier, there was essentially almost a mandate in arkansas,ates, nebraska, illinois, on raising the minimum wage. heavily against of theased raising minimum wage. >> i think it should be state-by-state.
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they cantes feel appropriately and typically where it is people a noxious legislatures, i think we should have a fair minimum wage. it should be different in new york city than iowa. having said that, you had crazy stuff in places like seattle. i think that goes overboard and use jobs when you do that. well in the teens, you prevent entry level jobs and support the growth. >> i grew him. i think it is state-by-state. the president should be clearly dated for the federal government and the public sector. i think state-by-state is the way to go. also think tom has said this before on a 40 hour work week. we have gotten the flack out of the system for the most part. we now need to get wages up and we need to make sure everyone works a full week. i think the 40 hour workweek makes a lot of sense as long as we can understand benefits the vacation andke and time with family and kids of
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education. he understands this better than most. >> right, that workers need a better minimum wage. we do need wage growth. that is in one of the areas we have not seen wages grow. we both feel like even though we are out of this recession, it is feels like we are in a recession. there are other areas where mitch mcconnell is going to tackle, obamacare. the rightspecially wing of the republican party, they want to repeal obama there. not going to happen. you have millions of people on it. no question what obamacare got past, it was not perfect. thepresident said that and country has said that. we need health care to be right. hastake what the president done today, and now you have to actually make changes.
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that is not wholesale change and it will not be repealed. it will not happen. >> i do not think so either. we did far too much and far too fast. it should be done in a state-by-state basis late here in massachusetts here to go backwards again would be a mistake. we should make it right and that takes time and fine-tuning. but i think it is possible. you are a strong advocate and strong donor to the republican party. he spoke at the republican national committee convention. how do you feel? do you feel good? do republicans finally have it on track? >> i do. i'm excited the quality of the candidates the republican party put up. joni ernst, and for governor in massachusetts, charlie baker, who won. it has been a tribute to the republican party leadership they have been able to organize this.
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>> maybe the republican party does not have a hispanic problem. maybe what we -- given what we saw the midterms, it is ok to galvanize the web-based. base. white >> i do not agree. i think we have to be inclusive. the tea party has long been the backbone. george bush got a tremendous latino vote. it is frankly a brand policies on people in our party in immigration helpings that. we need to fix that. >> immigration needs to pass. if we do not, there is a slim chance of a national election. 2016,is no question in the status quo is the same, there will be different -- it will be different for public as to when this late. come up.e it will robert, thank you for joining us.
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tom, the staples founder and former ceo. tune in tomorrow for full coverage of the jobs numbers. an all-star lineup of ceo's is, economist, and market voices. you do not want to miss that. dreamworks wants to all your holiday shopping experience. of bruce ratner and jeff katzenberg. we will be back. ♪
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>> holiday shopping spirits just got a high-tech makeover. dreamworks animation unveiling a new north whole journey at eight malls across the country today. shelby holliday is joining us from one of those love asians in new york. i do not know if people look at jeff katzenberg and think santa claus, but these exhibits, what are they actually offering here?
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you to think santa claus. it is basically a high-tech take on the old-school malt santa. reservationsmake online or using cap that eliminates the lines, and then polecome here to the north and are greeted by dreamworks animated characters and are taken through a big experience. they cut -- there are a couple of rooms and a display and their list through the north full. after they go through out all the videogames and interactive .tories, they arrive here it'll santa claus is waiting here. they have wish lists. i am doing great, hello. kids give their internet wishlist. they work like a wedding registry. everything is online him everything is high-tech, and the
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experience last about five minutes. >> ok. that was a nice tour. say hi to santa for me. but it is all cheery and it all sounds great, but i've got to say, if i need to be a little bit of a scrooge here, dreamworks has had a really hard time with movies in the last several years there they have had a lot of mrs., much more than hits. i am not sure i understand how this will help them is the bottom line. >> the goal is to help them diversify their revenue mix. j mertz revenue, they rely heavily on movies. 70% come from feature films and those are hit and miss. to sell moretempt consumer products. after the kids me santa, they can go through here at the gift store. they can add everything to their wishlist. dreamworks really wants to boost revenue from their products are
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another thing it does is help them build your brand and get kids familiar with the penguins, the dragons, and last but not least, gives them an and should point. if you look at this k's revenue, about one third comes from in parts and products. it is something dreamworks wants to get into more. way, it isreat temporary. the structures in the holidays, they can be a can down. jim works is looking for this to help sell more products and build their brand. hey, shrek. shrek the one of the most popular brands out of the studio, they're trying to revive that, to hit back at the younger consumers who might not know about the big green giant. >> thank you. interactive experience she is taking you through, they're owned by several cities, which
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is live tomorrow, we will be ofned by bruce, the chairman a subsidiary. we will be back and she does minutes. ♪
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>> we are 56 minutes past the hour, which means buber television is on the markets. a nice spike up after mario draghi is speaking live right now in frank for it and said members of the ecb are pretty much unanimous in saying they isl add more stimulus if it needed, that there is no split among the members, that they will help the markets and the economy and the eurozone even more than ecb. the eurozone tanking on that news as well. we will continue to monitor the news conference and you can watch it on our live event channel. we are on the markets again in 30 minutes. coming up, a historic moment in manhattan earlier this week with a world trade center that
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reopened for business. we will hear from a legendary developer, larry silverstein.
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>> welcome back to "in the loop." stocks will now be higher at the open, futures indicate. more americans filed for jobless benefits. lowest claims now at the level since 2011. the ecb president is speaking right now. the european central bank is ready to add more stimulus if needed. unanimous ons are unconventional instruments to boost the economy.
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the central bank trying to jumpstart the euro area economy. how low can they go? they are talking nice in washington. president obama and the senate republican leaders say they are going to try to find common ground on a number of issues. the president will spend his last two years dealing with a republican-controlled congress. the house already has a gop majority. the president spoke at a news conference. >> part of my task is to reach out to the republicans, make sure i am listening to them. i'm looking forward to them putting forth a specific agenda. notes in terms of what i'm looking at and what they are looking at. >> mitch mcconnell is expected to be the next senate majority leader. he is promising there won't be anymore government shutdowns and
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that the government won't default on its debt. 6% in of tesla motors up the premarket. they're forecasting robust growth in the next few years. here is elon musk. >> we are growing our production by like 50% per year, year-over-year, as far into the future as we can reasonably project. that is quite a big percentage growth. we would like to grow faster, of course. but it is worth bearing in mind. >> is this going to put a dent in elon musk's electric car? the shale energy boom in the u.s. is taking its toll on opec. by 2017 demand for its oil may hit a 14 year low.
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we are under 30 minutes away from the start of the training -- trading. stearns and max abelson join us. let's start with number 10. two companies pushing further into digital. digital content. opening a 2000 square foot production studio in new -- day thatsame j cbs is opening a digital news studio with original reporting. i was talking about this with tim armstrong. a numberlike there are of platforms where you can find digital platforms -- content. where does it end? >> the kids love it. youtube's studio is in chelsea. i live two blocks from there. >> i live 10 blocks from there.
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ofwe could be the new face original content at youtube. we could be celebrities for millennials. >> you can use their studios at well if you agree to the revenue-sharing principles and you have 5000 youtube channel followers. are not quite sure if those platforms are that influential. the number one place they will go to his cable television and broadcast. the revolution may not be televised, but it may be streamed. >> apple. campaign cam plane -- was uncovered targeting users in china. being attacked by chinese hackers, the chinese are being attacked. lurker is definitely a
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creepy name. say thatreports security experts don't quite understand what the endgame is for this. it is infiltrating ios systems, but they don't know why. it seems extra creepy. the malware that system is being constantly updated. they don't know the end goal. the key is not to charge your iphone with a usb device. >> i guess i won't do that anymore? >> [laughter] we are even talking about it, it raises questions about how vulnerable is any of our systems? essentially, as we get new technology, there will be new software that will try to break into our phones. it is a scary thought. jcpenney. this is kind of a scary thought. in a pitch to luer strugglers --
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shoppers, they are opening at 5:00 p.m. on thanksgiving. >> it reeks of desperation. mark your prices down a little bit more online. >> i'm a reporter and i'm not supposed to have opinions, but i feel like thanksgiving at 5:00, you should be eating with your mom. >> you can say that. have any of you ever done black friday shopping? >> no. >> never. >> i know people who have. people in my family do. it is a really big deal. people do wait in line for hours ahead of time. >> people have been killed. >> it could be smart marketing. jcpenney is by no means a surging retailer.
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foods reporting positive earnings. the grocery store chain slashed prices to win over bargain-hunting shoppers. they are the ones who helped propel this whole organic food movement and eating healthier. now you can get premium products at places like walmart. they are paying for this now. >> their profit forecast is still to grow by 9%. but they need to shed that image of whole paychecks. >> bloomberg intelligence did a side-by-side comparison. i remember when i first moved to new york, whole foods seemed like this distant luxury thing that i would never be able to step inside of. >> as a 22-year-old college grad
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, it probably would be considered "luxury." now, almost everyone who is going gluten-free or vegan -- this is also common. a beautiful, big whole foods in west london and it is way more expensive. >> but london is expensive. >> in london, it is less price competitive. >> amazon. they are taking package delivery by licensed cabdrivers in san francisco and l.a. using flywheel. >> everybody is competing for that final mile customer. everybody thinks competitors are being our yahoo!, but it is yahoo!, but itor is amazon. when i need help, i would possibly go to office. whole foods.
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, but delivery products from amazon. it is very surreal. >> is a really nice event in that final mile? madeere really money to be in that final mile? >> as long as drones are not delivering it. >> [laughter] >> the day i get a pizza delivered by a drone. >> excuse me, i'm waiting for my drone. coming up, the countdown continues. how the ecb is impacting the market. we will be back. ♪
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>> we continue to countdown
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until the opening bell. we are halfway through. it is time for our deep dive. number five, we are diving into the markets and the jobs report. our recent comments could impact the jobs report. the ecb kept its interest rates at record lows, but the say they mario draghi are ready and on the sidelines in case they need to do more to bump up the eurozone. cody, to bring in douglas the chief market strategist at voya investment management. this was a pretty big deal, mario draghi saying they are ready to do more. you were not happy with what he has said before. >> he made some good points today. i think the markets like it.
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the bank of japan's at the bar a lot higher. i think this is too little, too late. they cut the growth rates of germany and japan. when are you going to do it? he is no longer super mario. >> he needs to become super mario again. what do you want him to do? >> he needs to expand his bond buying. really, the thing on the table is getting into the sovereigns. go big. he needs to go big. and there isrouble a lack of policy. it could take a year or more to really hit. --you think the doj really boj really set the bar. >> they did. they are saying, we are committed to covering deflation. the u.s. economy is actually in great shape.
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europe needs to take more aggressive action. but they have been late. beencb balance sheet has contracting by the u.s. federal reserve, bank of japan has been expanding. they should have taken a cue from us and they did not. >> this is happening at the time when the fed is contemplating the next step on when to raise interest rates. it means that all the money is now flowing and continues to flow in the united states. speaking about late to the game, richard fisher said yesterday that we may be running into this problem of being too late to raise interest rates. >> if we wait until we have achieved what we considered to be a natural rate of unemployment, full employment, and or our inflation target is right on the spot, history has proven that every time the fed has done that, it has then had to tighten. >> would you agree with that? >> i think it is critical that
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we have been calling janet yellen a hawk and doves clothing. she is the one that ended qe. i think freddy's jobs report really matters to future fed policy. >> even more so than before? >> i think so. it could be a real big print. you look at the isam manufacturing job number. i think there is kind of a fix where they have to start thinking about that. we will see. i think truly if you delay too long in a gdp of 4.6% in the second quarter, how can you not raise rates? >> everybody is talking about the back half of 2015 to raise interest rates is wrong. >> it is really tough to forecast when it is going to be. i think they would be well in line if they did it earlier.
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i'm not going to put a date on it. i think richard fisher has a really strong point. >> hit the nail on the head. if it were to happen earlier than expected, come the markets absorb the shock? >> absolutely. corporate earnings this quarter is at the highest level ever for the s&p 500. ism,talk about gdp, growing oil prices, with these lower oil prices, we are going to get a fourth-quarter pop going into the holiday season. >> it is incredible how fast oil has fallen. thank you so much for joining us. tune in tomorrow morning at 8:00 eastern time for complete coverage of the jobs report and what it means for the economy and the fed. we have an all-star lineup. you don't want to miss that. much more ahead. we are going to count you down to the opening bell. we will be back. ♪
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>> welcome back to "in the loop." is joining me. good morning. , you have to talk about oil on a continuous decline. has brought their forecasted down to a 14 year low because of the growing energy independence in the united states with the shale oil boom. >> it is truly the massive new american revolution. been able to tap into these shale reserves. you heard president obama speaking about it.
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the one thing he hears is that they are so envious that we are able to do low-cost manufacturing in the u.s. because we are finding all of this oil in the u.s.. >> a little bit related to all of this is the keystone pipeline. it now looks like it is going to be back on the agenda for republicans and it will be hard for the president to veto approval in congress for keystone. >> they are pushing for the approval and it will be interesting to see what happens. veto it.ld still a lot of democrats would be pretty upset. a big republicans call it job creator. he has to weigh what impact that would be. number three, barclays ceo saying the u.k. bank will have less employees making the big banker bucks. , we believeof pay in paying competitively and we are able to do that as we
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reposition the business. as we make our investment bank more focused, that means we will have less very highly paid people within the organization. that is in line with the strategy. >> you know a lot about banker pay. [laughter] >> you have to go back to last year. , any was this report viewers who are bored, go to this report. it was an internal barclays report about how toxic the culture of greed in barclays was. it was kind of a landmark report. >> at barclays, come on, the culture of greed on wall street. [laughter] theyy other bank, if looked at themselves honestly, they would have to say the same thing. since then, barclays has really had to take a look at itself. number two, and immigration
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battle already brewing between president obama and mitch mcconnell. maybe they will find common ground over a drink? enjoy having some kentucky verve and mitch mcconnell -- bourbon mitch mcconnell. mcconnell -- with mitch mcconnell. >> he is not so bad. president obama doesn't seem to hang out with his republican opponents. the wall street guys always bring that up. he doesn't seem to want to talk to republicans. they were really offended by that. >> i wanted to bring you some breaking news we had coming over the bloomberg terminal. llergen has been tried to fend
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off a takeover attempt from valley and -- valiant. >> we will be back. ♪
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>> let's get back to the most important stories before the bell. one,e we get to our number we want to give you more time. this is big news between allergan and activists. >> it is a big some in the e eye for in the bill ackman. botox maker.he >> bill ackman has been pushing for valiant to take over
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allergan. offered $54 billion. allergan thinks that is grossly inadequate. this could be an alternate deal. >> had you keep all of this straight? >> this will be pitched as a much more constructive merger. >> number one, the corporate world is focused on elon musk and tesla motors. the most active stock in the premarket. surge inicted a orders. this is actually kind of a mixed report. investors ignore the bad news.
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they are not able to meet the demand and they are not going to hit the sales target. -- pays hard to say attention to all that when they are going to grow at 50% per year. >> it is like elon musk can't do any wrong. >> i feel a lot of people on wall street have it in for elon musk. they want to see him fall. but they like a winner. i spent like a half hour in a banker -- with a banker in a tesla. >> i had the privilege of being able to sit in that. it is really fast. trade, big ont to real estate. the opening ofaw one world trade center, one of the most controversial real estate projects in new york history. media giant condé nast moved
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into its new headquarters. will silverstein hopes it signal a new era for lower manhattan over a decade since the 9/11 terror attacks. i'm so glad to have larry in the studio with me. great to see you. >> great to be back. thank you. >> one of the remarkable things that people noticed is that it pretty much opened without much pomp and circumstance. it is pretty much business as usual. that was planned? >> it would appear to be. all the excitement is really beginning to rev up downtown at the trade center. you have tenants moving in. activity, leasing activity. you have the half terminal coming to a completion.
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the focal center of the transportation center is opening on sunday. it is a very exciting time. you --does it feel to you don't own one world trade center, you are the developer and codesigner and you are working on the other towers -- what does it mean for you to finally see this part completed? >> it is very exciting. time becauselling we are seeing the results of 13 years of work and there is more to be done, much more to be done. i would say we are really getting there. you can see the progress. >> it has not been an easy journey, has it? >> definitely not. >> we know well the controversies around it.
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this past week, we raised $1.6 billion. with that, we are going to be finishing tower three. then, in succession, we will finish seven, four world trade center, three world trade center. 2018. >> what about two? >> that will follow. a lot of interesting things are happening. >> a lot are wondering about two world trade center. >> the latest is that it is going to be built. if i have my way about it, sooner than later. i'm 83 years of age and i want to see it. [laughter] >> what is the big stoppage? tenants? >> not really.
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the big stoppage was to get done with tower three and that is now going forward. 2018 is the time for that. >> you could see two world trade center after 2018? >> hopefully they will come very close to each other. 2019, possibly. 2020, done. >> online. you had to pay 2% over prime? >> we ended up paying not 2% over prime. 5.63% as blended cost of money over a 30 year term. it was a bond issue that was quickly solved. it was a very successful raise accomplished last week. rate change the
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calculus on when you will be profitable on three world trade center? does it change the calculus on the cost for the construction? those are good rates for a 30 year financial. it indicates a lower breakeven cost. everybody benefits from it. center andd trade the fact that you have seen condé nast move in. they are the anchor tenant. how does it impact tell you are negotiating or finding tenants for seven world trade center? >> seven is full. go to four. and so forth. signed morningstar to 30,000 square feet. these are all cool tenants. >> new media, media, advertising. >> technology, advertising,
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media. that is what is powering new york's economy today. they are coming. the other cool tenants who want or so.lose by, next-door before the twin towers were destroyed, the big anchor tenants for the banks, the financial services industry. do you believe that they are ever going to come back to that area? >> i do. some of them are still there. goldman sachs is there in a major way. they occupy an entire building on west street. large group, major presence downtown. deutsche bank is a major presence downtown. you are going to see other financials coming back in with
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time because what we have is unique in terms of space. >> it is, but before we go, i want to bring this up only because not only is this a very important business project for the city, but it also is an important project for the american public, to see the world trade center back up and running. there was a new york times piece that quoted chris rock, who echoed, i want to read it for the audience. he echoed what the american public has a view. it, "the neverl going in their tower." he is saying it in one extreme. you are shaking your head. when people go down to that site, they remember 9/11. >> then how come we have least 5 million square feet of space in three world trade center buildings downtown? how come we have accomplished
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the major leasing in lower manhattan in general? tenants coming down and occupying significant amounts of space. major quality tenants. i don't think people look at it that way today. maybe 10hat is for years ago, nine years ago, eight years ago. many people who were present then are no longer present today. they are simply not decision-makers. i say that is hogwash. >> [laughter] hogwash. we will be back. we want to talk with you about real estate around the world. we are going to go on a mini tour. other projects he is developing in china and other places. tonightss "studio 1.0" with aaron sorkin. that is for television. stay. ♪
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>> we are back with larry silverstein, the chairman of silverstein properties. ofry, before we get to some your projects overseas, let's spend a little bit more time in new york. i was asking you about anchor financial services tenants. very publicly, jpmorgan decided they were not going to move over to the west side, they were going to stay put. they are under the gun by regulators. hope byat, is there any any developers that they can get a big financial services tenet? you don't have to restrict yourself to financial services. there are significant moves by technology tenants today. >> they are nowhere near as big in terms of their demand for space, though. >> condé nast was quite large.
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there are others who are quite large. what they are looking for is modern space. a space in which they can move large numbers of people and still give them a good atmosphere, a good environment in which to function. , you have thethat kind of needs that technology tenants require and these larger companies that employ many thousands of people require that kind of space in that kind of opportunity. they are filling these large units. decided to take all the trading floors that had been designed for financial services, they took all the trading floors because they could move large numbers of people into that space and use it in a very efficient manner. from their vantage point, it works perfectly. >> local politics, bill de blasio wants to make developers
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like you spend more. when you are building big plexes, theycom want 30% affordable housing or more. is that going to stop you from building in new york? >> it could in a very major way because the increased of a cost in a project without any reciprocal change which can detect us beneficially -- affect us beneficially. if he is looking for additional upside housing, there has to be something on the other side to make up for that difference. maybe higher density. not unreasonable. a third ministrations have done that in the past. administrations have done that in the past. >> you are looking at israel as a possible next place. why? worldis a part of the
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that we have had an interest in for a very long time. it seems as if this is as good a time as any -- and people might question that with all of the problems in the middle east. >> what has stopped you before? >> not as much of a desire earlier as i have today. emotion is part of this. we have family. >> heritage. >> heritage. my in-laws. my son-in-law comes from tel aviv. avivs family living in tel , who he visits with some frequency. a high personal interest. when the opportunity presents it is hard not to seize the chance to do something beneficial for a country. we hope to accomplish exactly that. >> great to see you.
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thank you so much for dropping by. larry silverstein, the chairman of silverstein properties. one year after taking dell dell andceo michael silver lake made a paper gain of at least 90% on their investment. 's diving deeper into this story on her program next. >> it is extraordinary. we are going to take a deep dive. one year ago, michael dell and silverlake taking dell private. we have crunched the numbers and it looks like he has made a 90% profit. great for dell. guess who is still angry? carl icahn. he was trying to take this company private over a year ago. i spoke to him two weeks ago at the robin hood event. he said, guys like michael dell, they are like casanova.
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more peoplerewed than casanova. a deal like this makes them look like smart guys, but if you actually crunch the numbers and look at what they are doing, it is highway robbery. carl is certainly not happy. i think he will be furious when he hears these numbers. i know you will dig into it, stephanie. what about dell and how it has done since being taken private? go into theing to mechanics. at the time, michael could not do it himself. he did not have the cash to do it. he needed to bring silverlake in. but they were able to take it down together. how do you get a 90% profit in just one year? >> thank you so much. stephanie ruhle of market makers. the ecb president speaks and markets listen. that is next. ♪
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>> the european central bank is prepared to add more stimulus if needed. news draghi spoke at a conference in frankfurt. bank officials are unanimous in adding more stimulus if it is necessary to jumpstart the euro area economy. the u.s. is investigating a russian billionaire who is a inner of vladimir putin's circle. they want to know if he used the american financial system to transfer funds linked to illegal deals in russia. opec is being hammered by the shale energy boom in the u.s. forecast tot their the month of crew they will need to pump for the next decade. by 2017, demand for the oil may hit a 14 year low.
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that does it for today on "in the loop." tomorrow, it is jobs friday. we have a huge day for you. we represent both sides of the aisle. real estate developer bruce ratner will also be here. a.m. onfocus at 8:00 bloomberg television. ♪
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>> it is 56 past the hour. bloomberg television is on the markets. 30 minutes into the trading day. aftere gains, muted gains jobless claims declined more than forecast last week. the s&p is off by about 0.1%. out the action over in europe. 0.5%, gaining after mario draghi said policymakers
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would implement further stimulus if necessary. the euro sliding on that news. decision,n the ecb i'm joined by michael mckee and mike reagan. i've got the mike's to talk about mario. anything we need to keep in mind? what is the key take away? he verbally has told the world again that the ecb stands ready to do whatever it takes to keep the euro zone falling further into economic malaise, which he said is a possibility today. he did not explain how he is going to do that. he said they put together a committee to look at possible outcomes. would he be doing that already? there are probably no surprises there, but just because he said they are going to look at and they were unanimous in doing it, the euro is at a two-year low.
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he may have accomplished what he set out to do. >> perhaps he is setting the stage for next month where you have the euro area setting up more detail about the stability in their report. >> they want to see what is going to happen at the beginning of the bond program. they did not say when they're are going to start the securities program either. the goal is to get up to where they were in 2012 as far as the balance sheet. they have a lot of weight and see to do. see, but you take a look at how the markets the european news, markets liked it. the american markets were muted. >> the european markets are holding most of the gains. futures, it can be for the u.s. market opened.
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like death s&p -- premarket, buthe there was kind of a head fake. it was a buying stampede. stampede's like that last about 17-25 days. today we are here in the 16th day. it might be time for people to take a breather. sectors, theiskier high data stocks did not really participate. >> can we take the breather if we are not going to get a full five just -- full-fledged qe program? >> people may be keeping their powder down before the announcement tomorrow. while people are worried about a
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european slowdown, at the moment, it has not been that severe that his -- it has affected companies. >> interesting stuff. thanks for that. we are on the markets again in 30 minutes. "marketmakers" is next. ♪ >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle . >> a year after taking his computer company private, michael dell has doubled his go. >> with the senate in republican hands, a new push for the keystone pipeline. we will talk to the industry's top lobbyist. >> and live like a king. this castle can be all yours and a bargain-basement price. watch out, it could turn out to be a royal pain. ha ha ha.


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